Financial Access for Rural Markets, Smallholders and Enterprise Programme - IFAD
Malawi is classified as a Least Developed Country, ranked at 173 out of 182 countries. It faces major challenges, including drought, food insecurity and the HIV/AIDS epidemic. The poverty headcount stands at 50.7 per cent of the population, with 30 per cent of people living in extreme poverty. The agriculture sector directly or indirectly supports the livelihoods of over 80 per cent of Malawi’s population, provides the bulk of the raw materials required by the manufacturing industry, and contributes 40 per cent of total export earnings. Agriculture is the main foreign exchange earner, primarily from tobacco, sugar, tea, coffee and cotton.
The Financial Access for Rural Markets, Smallholders and Enterprise Programme (FARMSE) will be a nation-wide effort to support household economic development through access to financial services that are appropriate to each socio-economic level of poverty. This will include social payment graduation programmes, community-based financial organizations, financial cooperatives, microfinance institutions and commercial banks. The programme is expected to benefit about 430,000 people, of which an estimated 30 per cent will be women and at least 20 per cent will be young people.
President’s report
Proposed loan and grant to the Republic of Malawi for the Financial Access for Rural Markets, Smallholders and Enterprise Programme
Additional Data
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Total Project Cost
US$ 99.73 million
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IFAD Financing
US$ 72 million
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Financing terms
DSF Grant/Highly Concessional
Co-financiers (Domestic)
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National Government Cash
US$ 4 million
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Private sector local
US$ 6.15 million
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Private Sector Domestic In-kind
US$ 6.94 million
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National Government
US$ 9.58 million
Project Contact
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Bernadette Mukonyora